Chapter 7 - Business Strategy, Innovation & Entrepreneurship

Innovation helps firms achieve a competitive advantage by ______.

redefining the market in their favor

The four-step innovation process begins with ______.

An Idea

The introductory stage of the industry life cycle is a ______-intensive process.

Capital

What happens during the last step of the innovation process?

Competitors try to imitate the successful innovation

During the introductory stage of the industry life cycle, innovators will likely devote most of their time, money, and effort to ______.

Research & Development

The development of most industries follows a(n) __.

S-Curve

Industries often tend to follow a predictable industry life cycle?

True

The negative effect of innovative ride-sharing services, such as Uber and Lyft, on traditional taxi cab companies is an example of ______.

creative destruction

The process by which word-processor manufacturer Wang Laboratories captured the market from typewriter manufacturers, and which explains how it was later replaced by PC manufacturers and mobile-phone companies, is known as ______.

creative destruction

Place the four steps of the innovation process in order from first to last. (From top to bottom)

Idea, Invention, Innovation, Imitation

What is valuable proprietary information that is not in the public domain and where the firm makes every effort to maintain its secrecy called?

Trade Secret

Which of the following allows a firm to redefine a market in its favor?

innovation

Which of the following is an example of creative destruction?

mobile phones replacing traditional telephones

Which of the following is an example of invention?

Apple combining smart phone and wristwatch technologies to create the Apple Watch

The innovation process is a four-step process that consists of idea, invention, innovation, and ______.

Imitation

What is the commercialization of an invention called?

Innovation

When a company introduces a new product or process or business model with the intent of gaining a competitive advantage, that company is engaging in ______.

Innovation

Which of the following is a primary factor in avoiding creative destruction?

Innovation

What is the relationship between innovation and competitive advantage?

Innovation is a powerful weapon for gaining and maintaining competitive advantage

Creating new products out of new or existing ideas is known as ______.

Invention

Which statement best describes the speed of innovation over the past hundred years?

It has accelerated dramatically

Innovation can create value for one firm while destroying value for another.

True

The ______ determines whether an invention can be patented.

U.S Patent and Trademark Office

In order for a product or service to be considered patentable, it must be ______.

Useful, Novel, Non-obvious

A patent holder typically has a ______.

temporary monopoly